EPAM Expands Services with Acquisition of First Derivative

EPAM Systems Announces Strategic Acquisition

EPAM Systems, Inc. (NYSE: EPAM) has taken a significant step forward in enhancing its financial services division through a strategic agreement to acquire First Derivative, a well-respected consulting and managed services firm for the capital markets sector. This acquisition is set to broaden the capabilities EPAM offers in capital markets, banking operations, and asset servicing, thereby benefiting existing and new clients extensively.

Strengthening Global Client Solutions

With First Derivative's expertise added to its portfolio, EPAM is poised to provide a comprehensive array of AI-driven solutions tailored for the banking and capital markets industries. This move will introduce over 100 new clients to EPAM, facilitating a richer service offering and setting new benchmarks in technology services.

Enhancing Market Position

Balazs Fejes, the President of Global Business and Chief Revenue Officer at EPAM, stated, "We're pleased to expand our financial services portfolio and diversify our global footprint in key regions with the addition of First Derivative's deep expertise across capital markets, banking operations and asset servicing." This sentiment highlights EPAM's ambition to innovate and expand its service reach in the fluctuating financial landscape.

The Role of AI in Transformation

EPAM aims to leverage First Derivative’s robust industry presence to deliver AI-enabled, end-to-end services. This acquisition allows for a seamless integration that enhances operational efficiencies while maintaining compliance. Clients can expect to gain deeper insights into their data and significantly improve their digital ecosystems.

Industry Expertise

First Derivative is well-regarded in the financial sector, known for its engineering and business service solutions that cater to the top global banks and financial institutions. Their innovative approaches help clients navigate compliance challenges while optimizing operational costs and improving efficiency through modern technological adaptations.

Commitment to Engineering Excellence

David Collins, CEO of First Derivative, expressed excitement about the merger, emphasizing the collective potential that combines EPAM's digital technology with First Derivative’s business capabilities. This collaboration aims to empower large investment banks by providing a full suite of services designed to enhance competitiveness in an ever-evolving market.

Looking Forward to Future Success

First Derivative has a formidable history, having assisted the world’s leading financial institutions for over 25 years. The company stands as a testament to successful partnerships and long-standing relationships within the industry. Seamus Keating, CEO of FD Technologies, underscores this success and shared aspirations for continued growth through the EPAM merger.

Details of the Acquisition

The acquisition remains subject to the customary closing conditions and is projected to be finalized by the end of the current fiscal period. EPAM recognizes the importance of navigating these processes smoothly, ensuring compliance with regulatory frameworks as part of their commitment to responsible corporate governance.

About EPAM Systems

Founded in 1993, EPAM Systems has established itself as a standout in the world of digital transformation and engineering services. Recognized as a leader in the tech industry, EPAM is dedicated to delivering innovative solutions that empower clients to meet their transformation goals effectively.

About FD Technologies

FD Technologies comprises data-driven businesses, including KX and First Derivative, enabling organizations to leverage insights for growth and modernization. With a global reach and a diverse talent pool, these companies work synergistically to further advancements in digital finance solutions.

Frequently Asked Questions

What is the significance of EPAM’s acquisition of First Derivative?

This acquisition enhances EPAM's capabilities in delivering AI-driven solutions and expands its client base, reinforcing its position in the financial services sector.

How will clients benefit from this acquisition?

Clients will gain access to enhanced technological solutions, improved operational efficiencies, and a broader array of services tailored to the complexities of the financial industry.

What services does First Derivative provide?

First Derivative specializes in consulting services and tech modernization for financial institutions, primarily focusing on regulatory compliance and operational efficiency.

When is the expected closing date for the acquisition?

The acquisition is anticipated to close by the end of the current fiscal period, pending all customary regulatory clearances.

What does the future hold for EPAM and First Derivative?

The collaboration is expected to drive innovation and shape the future of financial services, positioning both companies as leaders in providing cutting-edge tech solutions in capital markets.

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